| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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| #15211 | Closed | public | Multifamily | Les Sparks |
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Good afternoon, I am working with a HUD project that did a loan modification at the end of 2020. They were required to pay a good faith deposit that was refundable. It was refunded in 2021, within 90 days of closing. This deposit is currently recorded as a miscellaneous other current asset. Can this be included in the surplus cash calculation at year end? Also, they received PPP loan funds and those are reported as miscellaneous other current liability. They received the funds on the project level, even though the employees belong to the management company. The loan was 100% forgive in February 2021. Is it appropriate to leave this as a miscellaneous other currently liability and exclude from the surplus cash calculation. |
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The general guideline is that those items are not includable as they are not in cash. HUD just considers this to be a slippery slope – where is the end or the cut-off? !0 days or 40 days? That is why HUD’s COA just simply disallows such items. If you choose to include them, there is a risk that it could be challenged. Les Sparks |